Helaba's supply just covered

After a long string of syndication success stories this year, the covered bond market finally saw some investor pushback on Tuesday when Landesbank Hessen-Thueringen (Helaba) issued a tightly priced two tranche Pfandbrief. The outcome gives ammunition to those that are concerned valuations have become overstretched. However the funding was very cheap, attracted exceptionally strong international demand and was placed with high quality accounts.